OPWP signs agreements worth 60mn for Salalah water project

The Oman Power and Water Procurement Company (member of Nama Group), the sole procurer of all electricity and water capacity in the Sultanate, signed a number of agreements to establish the Salalah Independent Water Project with an ACWA Power-led consortium with Veolia and DIDIC.

The event was held under the patronage of Sayyid Mohammed bin Sultan Al Busaidi, state minister and governor of Dhofar, with a number of government officials and representatives from the consortium and the electricity sector in the Sultanate attending.

The plant, with a capacity to generate 25 million gallons of desalinated water per day using reverse osmosis, will be procured by Oman Power and Water Procurement Company (OPWP) under a build-own-operate framework on the back of a 20-year water purchase agreement.

The project will be vital to meet Dhofar region’s demand for water, which is expected to rise at an average of six per cent per annum over the next seven years.

Dhofar Desalination Company, the company established for the execution of this project, will be owned by ACWA Power, Veolia Middle East and Dhofar International Development & Investment Holding Co (DIDIC).

Yaqoob Bin Saif Al Kiyumi, Chief Executive Officer of OPWP, said: “This project is the first standalone water desalination project in the Governorate of Dhofar and will contribute to the security of water supply in the light of urbanisation and ambitious projects in various sectors in the Governorate.”

“The development of this project at a total cost of more than OMR60 million reflects the confidence of foreign investors in investing in the Sultanate and in the water sector in particular, given the legal and regulatory transparency and the stable environment,” Al Kiyumi added.

“We are pleased to work in partnership with OPWP to deliver desalinated water to the region. We look forward to continuing to supply power and water at an economical cost,” Paddy Padmanathan, President & CEO of ACWA Power, said.

“The Salalah project will play a key role in meeting the increasing demand for water in the Sultanate. It will support the Sultanate’s efforts to reduce the reliance on groundwater resources and maximise the use of local resources. Oman continues to be one of the leading investment destinations in the region, and we look forward to furthering our presence in the country,” said Rajit Nanda, Chief Investments Officer at ACWA Power.

The engineering, procurement, and construction of the plant will be handled by a consortium of Fisia Italimpianti SpA and Abeinsa Infraestructuras Medio Ambiente SA. Operations and maintenance will be undertaken by a consortium led by Veolia Middle East with NOMAC Oman and DIDIC.

“We are very glad to have partnered with ACWA Power and DIDIC and we are committed to extending the delivery of optimal operations and plant performance to OPWP,” said Patrice Fonlladosa, President & CEO of Veolia Middle East & Africa.

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